China reported that its consumer price index edged up to 1.8 percent in December from 1.7 percent the month before, driven by higher food prices. But broader gauges showed price pressures easing. "Looking ahead, we think that food prices aside, inflation will continue to drop back in the coming quarters as economic activity softens," said Julian Evans-Pritchard of Capital Economics.

Financials led the charge, with HSBC up 1.5% to another three-year high, and Chinese majors rising as much as 2%.

Elsewhere:

Australia’s S&P ASX 200 slipped 0.6 percent to 6,096.70.

Korea’s Kospi shed 0.4% as Samsung Electronics slid a further 2.5%. The index heavyweight had fallen 3% Tuesday after its fourth-quarter earnings estimate fell short of analysts’ expectations.